Buying Negotiating Tactics

Ski · November 7, 2016

With Thanksgiving and Christmas around the corner and a few months of cold and snow in the N.E. to follow, I thought it might be a good time to buy a used RV. Looking for some negotiating tactics with a dealer. Guess the same would apply to a private owner. Where does one start? 15 or 20% off as an example?

Thanks,

Al

Ronbo · November 7, 2016

40% below msrp

jc2 · November 7, 2016

Offer 60% but do not pay more than 70% of asking price on used & new. Been there, done that enough to know what I'm doing and there are many many units out there to choose from.

ronmon · November 7, 2016

I'd think it's more than a "flat rate" answer. What are the current book values, how is it equipped, what condition is it in, etc.. MSRP wouldn't seem relevant to a used unit. When I sold my Excel 2 1/2 years ago I would have laughed at anyone who offered me 60% of my asking price. My asking price was below wholesale & the first caller came, looked & paid my price without any hesitation.

Maybe times are different now... a buyer's market?

Ron

Kirk W · November 8, 2016

Ron gives some good advice. You have to know what RVs are selling for in order to judge any price. Even with new RVs you usually don't know the actual MSRP because unlike auto dealers, the RV industry is not required to show you that and most do not. A few manufacturers list an MSRP on their website for the base models, but even those are seldom accurate on the dealer lot because they add equipment and you don't know what it should cost. All of this makes RV shopping more difficult. A genuine factory suggested price typically builds in about a 40 - 50% markup and no dealer can survive on less than 10% margin and most need significantly more.

For used RVs the problem is much greater since there is even less consistency in pricing, particularly if you include the private sellers. A good place to start is with the NADA listed prices and while they have some information on the internet, far better information is in their published books which can often be found in the reference section of a public library or you can purchase one via the internet. Even the consignment lots tend to be priced by the dealer so there is usually more consistency of pricing from dealers than from private sellers. Most dealers will at least discuss a sale after an offer as 60% of the asking price but it is pretty rare to actually buy for that much off. But you need to have some idea of the market price similar rigs are selling for in order to make an offer that is reasonable for both parties. Some dealers, like PPL of Houston show selling prices for their recent sales and those can be helpful if you know that they are actual and not asking prices. There is really no quick and easy way that actually works.

rynosback · November 8, 2016

I'd think it's more than a "flat rate" answer. What are the current book values, how is it equipped, what condition is it in, etc.. MSRP wouldn't seem relevant to a used unit. When I sold my Excel 2 1/2 years ago I would have laughed at anyone who offered me 60% of my asking price. My asking price was below wholesale & the first caller came, looked & paid my price without any hesitation.

Maybe times are different now... a buyer's market?

Ron

I agree Ron. Anything priced right will sell quickly.

bruce t · November 8, 2016

Don't believe all the stories about paying x minus y below MSRP. How many folks really really honestly really get those discounts? Huh? I bet when you whittle down to the bones of a deal then the true price is not as low as some would have you believe.

My only advice is to pay what you are comfortable with. What your budget will allow. Along with your spouse!!!! Using your head and common sense is ok but don't forget your heart. You have to like what you buy even if 'others' think you paid too much. There's no law that I know of that says you must have the best deal in the rv park.

Do your homework on the net and you'll be ok.

regards

Ronbo · November 8, 2016

Ours was purchased in September of 2013. The 2014's were on the lot so they wanted it gone. We received a solid 40% below msrp on our new unit. I am sure the manufacturer ponied up some money to move the unit.

sandsys · November 8, 2016

Whatever it is worth to you. When I sold my custom van I priced it more than the consignment dealer wanted me to. Then a woman who was interested in it figured out it was mine and emailed me asking her questions. She was balking a bit at my price but I thought she'd eventually go for it. So I asked the dealer about inquiries he was getting and shared two of them with her. She paid my price immediately. Obviously she decided she wanted my rig and didn't want to lose it to someone else so she decided it was worth it to her to pay my asking price.

Linda Sand

Ski · November 9, 2016

Lots of good advice. Bruce T. Mentioned comfortable with, do homework, common sense and what I like the best "go with your heart".

Sometimes I forget the heart part.

Talked with the dealer long distance today. On a $60,000 unit he knocked of $5,000 just like that. Although we haven't seen the unit yet,

I believe it might be the one for us. Told him we were busy and wouldn't be able to come and look at it until after Thanksgiving. Before we head out there, thinking of offering $47,500 and see what happens. If it's gone by then, no big deal.

Al

Flying Finn · November 9, 2016

Fact based negotiations is the most effective tactic. Do your homework. As Kirk suggested, start with the bank books, look at comparable selling prices if possible, RV trader for example. The technique I have used most successfully is to offer the dealer a percentage over their actual cost. I.E show me what you paid and I will offer a percentage over that. You will have to decide what that percentage is. The dealers are entitled to a fair return to cover salaries and keeping the lights on, ROI etc. Keep ego/emotions in check and negotiate with facts. Be willing to walk away from a deal if things get one sided. Supply far exceeds demand this time of year.

pjstough · November 9, 2016

I agree Ron. Anything priced right will sell quickly.

And vice versa.

ncrowley · November 11, 2016

Any recommendation for so much below the asking price does not make any sense unless you are talking about a new RV and you are talking about MSRP. What if the asking price is grossly over inflated? What if the asking price is a good price to start with? Also, what is the condition of the RV? What will it cost to get running? What has been done to it that you do not need to do? I got a good price on a used coach but have put more money into it than I anticipated. I would have been better off to purchase one at much more money that had a lot of things already done.

I would look for one that has been well cared for with complete maintenance records. One that has had things repaired and updated over the years. Once that has been kept covered when not in use. I would pay much more for those features.